inflation-linked-bonds

This thesis aims to conduct a comparative analysis between two types of Italian government bonds: the conventional BTP and the inflation-indexed BTP Italia. The study first explores the key features, risks, and valuation of bonds in general, and then provides a specific focus only on Italian bonds in Chapter 2: zero-coupon bonds (BOTs), fixed rate notes (BTPs) and inflaton linked bonds (BTPs Italia), all of which are issued by the Italian government. In particular, the functioning of BTP Italia is presented in detail. In the final chapter, pricing and scenario analysis for comparing the relative convenience of BTP and BTP Italia is presented. By examining these aspects, the thesis seeks to provide insights into the potential benefits and drawbacks of investing in inflation-indexed bonds compared to their conventional counterparts within the Italian government bond market.